Do accelerating trade and foreign direct investments (FDIs) imply and positive, negative or neutral impact in terms of employment growth, income equality and poverty alleviation in developing countries? In the basis of its theoretical and empirical chapters, this book puts forward the following conclusions:

* Contrary to the optimistic prediction of the Hackesher-Ohlin model, the employment impact of globalization crucially depends on the technological absorptive capacities and the institutions context of the different developing countries.

* Globalization does not appear to be the main culprit of the distributional deterioration which has occurred in most developing countries in the last twenty years. However, increasing trade makes it possible for the 'skill-biased technological change' to trickle down to the developing countries; in turn this may imply wider wage differentials and result in increasing within-country income inequality in developing countries.

* The relationship between globalization and poverty is country-specific; however, in the majority of developing countries increasing trade has implied an increase in economic growth and an overall decrease in absolute poverty.

'[T]his collection makes serious analytical progress and is an important contribution to the literature.' - Economic Issues

'A welcome study focusing on employment structure in developing countries.' - Hiroki Nogami, The Developing Economies


'Overall, this book presents an articulated analysis of a key topic...The goals and the logic fo the analysis are clearly stated and appear resonable...the volume represents a very useful tool for a wide audience.' - Matteo Cervellati, Rassegna Bibliografica

PART I: THE FRAMEWORK
Introduction; E.Lee & M.Vivarelli
External Liberalization in Asia, Post-Socialist Europe and Brazil; L.Taylor
Comments; R.Torres
Globalization, Skill-Biased Technological Change and Labour Demand; E.Berman & S.Machin
Comments; M.Vivarelli
PART II: EMPLOYMENT
The Employment Impact of Globalization in Developing Countries; S.Lall
Comments; M.Piva
The Developing Countries' Labour Demand in a Decade of Globalization: A Statistical Insight; J.B.Gros
Comments; M.Piva
Trade, FDI and Employment: Some Empirical Evidence; V.Spiezia
Comments; S.Lall
PART III: INCOME DISTRIBUTION AND POVERTY
Trade Liberalization, FDI and Income Inequality; G.A.Cornia
Comments; S.Reddy
Globalization, Skills and Within Country Income Inequality in Developing Countries; M.Vivarelli
Comments; G.A.Cornia
Does Globalization Reduce Poverty? Some Empirical Evidence for the Developing Countries; E.Santarelli & P.Figini
Comments; L.Campiglio
PART IV: POLICY IMPLICATIONS AND CONCLUSIONS
Globalization, Labour Markets and Social Outcomes in Developing Countries; S.Reddy
The Social Impact of Globalization: The Scope for National Policies; A.Fosu
International Strategy for Decent Work; J.Langmore
Conclusions; E.Lee & M.Vivarelli

EDDY LEE is Director of the International Policy Group at the International Labour Office in Geneva, Switzerland. He is author of The Asian Financial Crisis: The Challenge for Social Policy.

MARCO VIVARELLI is Professor of Economics at the Catholic University of Piacenza in Italy and Senior Research Economist at the International Labour Office in Geneva, Switzerland. He is author of the book The Economics of Technology and Employment as well as a number of articles which have been published in international journals.